The Portland daily press., 1887-01-12
sJ,5es,se7.sO
EXPENDITURES.


Total receipts during year1ss 81 .24s, ,s5o.7s
Cash balance December 81, 1885,. 3i8,516.52
81 ,5e3, ,s67.3O
EXPENDITURES.
The expenditures during the year may be
grouped as follows:
On account Of public debit. 8 100000
Interest ON public debt............. 312,791.O0
Sinking fund. d........................ SO579.95
frtigaaii ional purposes. ............... 3Ss 354O1
Agricultural purposes . ls so. %
Penal and reformatory institutions. 241O0.UU1
Deaf, dumb and blind. .............. 16673.39
Maine General Hospital. .......... 100000
Bath Military and Naval Asylum. 100000
and sameMsea a and shore fisheries 1o2o5.e2
Insane State benehciaries and
state pauperS rS...................... DOo4O-Ol
Military purposes 1881 .39
Railroad and telegraph tax paid to
towns and cities. 2l lb36.S5
County taxes collected in 1885 paid
10 counties. ...............-...... lz,olO.lo
Miscellaneous and current expens-
OF State government, including
salaries of all State officers, judg-
es and county attorneys ............ 16S.b3O.26
Total expenditures during the year
Cash balance December 81, 1856. siss5i As
si,5Gs,s6Tso
SINKING FUND.
The Sinking Fund at the close Of
the year amounted, at par value
gllO,OOO.OA
At the close of the year 1885, it
amounted t0....-..- l,JoO,zIo.4l
past Year Of ~ 15o,1121s
Tie market value Of the sinking
fund at the present time, exclusive
OF premium on State of Maine
curitles therein 357 ,65O.5T
TOTAL NET INDEBTEDNESS OF THE STATE.
After deducting resources, ineud-
ing Sinking Fund al market value
the total net Indebtedness Of the
state amounts 81, $50, ,96o.2O
NOMINAL BONDED DEBT OF THE STATE.
The nominal bonded debt Of the State is as
follows:
Bonds due october 1, 1sS9......... 1897, 100000
Total. tal........................- 5157, ,Oooco
TOTAL NET BONDED DEBT OF THE STATE.
The total net bonded debt Of the
State after deducting the Sinking
Fund at its present marke value iss2, ,700, ,349.43
REDUCTION OF THE PUBLIC DEBT.
The public debt Of the State has been de-
creased during the year, as follows
BY payment Of bonds due in 1885,. s2.oooooooo
BY Increase OF the Sinking Fund (par
value). e).-.-..,'..-..'.' ........'.' loo'll2.I6
Total reduction during year 1886. .s2O0,11216
1EhiOnAh1 Ivan MI fAEQtAfshsDs
The Treasurer was authorized by tie last
legislature to procure for the year 1886 tenn
pOrary loan OF three hundred thousand dol
lars, or so much thereof as might be required.
Although the receipts Of the office were de-
rived from reduced rate Of taxation, the
Treasurer found it unnecessary to avail him
self of the authority granted by the. resolve,
all demands upon the treasury having been
met from the current receipts Of the office.
ESTIMATED RECEIPTS AND EXPENDITURES
FOR THE YEAR 1887.
The Treasurer's estimate of the receipts
and expenditures for the year 1887 are based
upon the present law for taxation, and are as
follows:
Receipts, S02 lG5 56
expenditures, s,...................... l,245,I1O.oO
Which wouldleaye balance In favor
OF the state of.......-........-. ..S205,397
This balance would be reduced by any ap-
prOprlati0nS, not at present authorized by
law, which may be made by the legisla ture
THE PUBLIC DEBr-sUGGEsTIoNs.
We quote in full: According to existing
law, / have included, In the estimate Of ap-
preparations to be made by the incoming leg
| islature, the sum of SS0,479.95 for the sink
| ing fund and have also included in the inter-
| est to be paid on the public debt the amount
| due on the 81, ,161, 10000 of State bonds held
| in the sinking fund which interest for the
| year 1887 will amount to the sum OF $50, 69O,-
Il
| legislature to determine what steps shall be
| taken for the refunding OF that part OF the
pubic debt due in June and October, 1889,
| which will remain after the sinking fund
| shall be applied to the reduction Of the debt
In my judgment the sinking fund has been
| carried as far as the obligation OF the act OF
Il 1868, under which II was established, re-
i quires. The rapid rise OF all the securities
| in which the fund could be invested, has, to
| a considerable extent, reduced the proht
| which was expected from its creation and
i vet it has served the most useful end to
| which it was originally dedicated in exalting
the credit Of the State to the first rank.
If the legislature shall now make pr0yis-
i ion for refunding the amount of debt which
/ will remain in 1889 which will be less than
| three millions in all, 1t might be- wise to omit
| further taxation in any form on account Of
| the debt. The bonds can be refunded at
| much lower rate Of interest and the burden
| upon the tax payers materially lightened.
| The immediate effect of this course will be
| large reduction Of taxation to be followed by
another reduction in the near future. In re-
| funding the debt alta low rate of interest,
| the bonds would perhaps never rise to high
| premium, so that sinking fund established
for their ultimate redemption could be most
safely, and in the end perhaps most prohta-
bly, invested in the bonds themselves.
The ultimate advantage and utility Of a
sinking fund are, however, somewhat ques-
toned by large class Of skilled financiers,
the principal objection being the impractical
/ DlIlLN OF 50 cOnQuClluR Lub OptIdtlOn5 VI
fund as to gain sufficient profit to justify
its establishment with its attendant risk Of
loss It must, however, be admitted that the
sinking fund Of 1868, though somewhat dis
appointing calculations, has proved highly
advantageous to the credit Of the State, and
to the liquidation Of our debt
| If the establishment Of another sinking
fund should not meet the views Of the Legis-
lature it might be found advantageous TO
fund the debt, so that It should be made pay
1 oh In ri for forfxr "a
| years, which, estimating the debt in 1889 to
be S2,s00,OO0, would be $4,000 each year.
In this way the interest for the first year
at per cent, would be $4,000, second year
700, and so on in the same proportion, thus
reducing the interest year by year, and rap
idly decreasing the financial burden.
II 1t were desirable to reduce the annual
payment. the debt might be divided into
smaller yearly installments for longer peri
od. Wise legislation at this time will leave
but slight burden In the future upon the tax
payers from the public debt.
1t Is not within my official province TO rec
ommend specific measures, but venture 70
suggest that il may prove highly advantage
Gus to the State Treasury to have refund
ing bill passed at the coming session, which
besides fixing the rate OF interest and the
tenor of the bonds, shall confer upon the
Treasurer the right, at the earliest practica
BILE day, to exchange new bonds for the old
or redeem the old in cash on such terms a
may prove advantageous to the State.
III the passage Of the refunding bill SHOULD
be postponed until after the cOnvening Of tht
Legislature Of 1889, the State might lose thu
advantage Of exchange at par Of the new
bonds for the old during the last year the,
are outstanding.
In my judgment, the subject should re
ceiye the careful attention OF the incoming
} legislature"
INVESTMENT OF SINKING FUND AcCUMULA
TIONs.
Under the present law the Treasurer /
obliged TO invest the income Of the SINKING